Ally McCoist's side have romped to the League One title this term but doubts remain over the cash that will be available to strengthen the squad for a shot at three-in-a-row.
Rangers are already huge favourites to claim the crown and Smith said: "I think that's fair, if you look at the size of the club and where we want to go.
"I've said before that, no matter the standard, I would be confident of playing anyone at Ibrox.
"I was the same when we played Dundee United in the cup. People made out that they were favourites but I was confident we could do a job on them.
"It never worked out that way - but I would still fancy ourselves against any team in the country. I would be confident going with this squad in the Championship.
"It's outwith our control. If the manager can bring players in, that only helps us. But I would be very confident going into the Championship with this squad.
"Sometimes it hasn't been pretty but, if you look at the reaction of the crowd when we played Dundee United, there was a bit of light - a bit of hope - there.
"I know that that players gave everything. We didn't get a result but, up against one of the best teams in the country, we more than matched them.
"So I think it just proves that there are a lot of good players here. With another year of playing for this club, dealing with the criticism, they'll only get better."